Fidelity Digital Assets has noted that Bitcoin’s volatility has plunged to the lowest level ever
“Realized volatility” measures how much an asset’s price fluctuates over a specific period (in this case, one year). A score of 42% is exceptionally low for Bitcoin, which has historically seen annual volatility exceeding 100% or even 200% in its early years.
In plain words, Bitcoin is currently “boring.” This “uncharacteristic” calm suggests Bitcoin is losing its “casino” status. It is trading within a tighter range than usual, without the violent 20-30% daily swings that characterized previous cycles.
However, it is worth noting that volatility tends to be cyclical in financial markets. It transitions from periods of high turbulence to low stability. A drop to 42% indicates extreme compression, which is comparable to a spring being coiled tight.
A new all-time high?
Fidelity Digital Assets has identified a rare and historically bullish signal: Bitcoin has become unusually stable
It illustrates a technical phenomenon where periods of all-time low (ATL) volatility (red bars) act as a precursor to all-time high (ATH) Prices (green bars).
For instance, the low volatility of 2016 preceded the 2017 bull run to $20,000.
The chart shows a fresh cluster of red bars appearing right now. Fidelity’s argument is that this current period of stability is a sign of accumulation that is building energy for a move to new highs.
Bitcoin is currently trading at $90,789, struggling to recover from a recent drop. The cryptocurrency recently failed to surpass the $95,000 level
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Options Signal Fear Amid Subdued BTC ETF Outflows
Bitcoin traded in a narrow range near $70,000 on Friday after a stumble to reclaim the $75,000 level earlier in the week. The back-to-back sessions of net outflows from U.S.-listed spot Bitcoin ETFs cooled a recent run of inflows, prompting traders to reassess whether institutions are turning more c
CryptoBreaking40m ago
Bitcoin Has Stabilized, But Investors Are Paying Up for Downside Protection: VanEck
Bitcoin's volatility has decreased to around $70,000, but traders are still heavily investing in downside protection. Although premiums for puts have dropped, they remain high historically, suggesting caution among investors. This defensiveness may signal an impending price bottom, as similar market conditions in the past have led to recoveries.
Decrypt1h ago
